Prysmian S.p.a. · MIL:PRY
Prysmian — H1 2013 Earnings Presentation
27 slides from Prysmian's earnings presentation, Aug 1, 2013
Slide 1: H1 2013 Financial Results
H1 2013 Financial Results Milan – August 1st, 2013 H1 2013 Financial Results 1
Slide 2: Agenda
AGENDA H1 2013 Highlights & FY 2013 Outlook Financial Results Appendix H1 2013 Financial Results 2
Slide 3: H1 2013 Key Financials
H1 2013 Key Financials Euro Millions, % on Sales Sales Adjusted EBITDA (3) Adjusted EBIT (4) -1.8%* 647 7,973 7,848 586 483 435 -5.3%* 3,916 308 282 3,622 229 204 2011(1) 2012 H1'12 H1'13 2011 (1) 2012 H1'12 H1'13 2011(1) 2012 H1'12 H1'13 * Org. Growth 7.3% 8.2% 7.9% 7.8% 5.5% 6.2% 5.9% 5.6% Adjuste
Slide 4: Adj. EBITDA evolution by business Q2'12 Q2'13
Adj. EBITDA evolution by business Organic growth improvement across all businesses and synergies driving margins recovery Adj. EBITDA by business Euro million and % on Sales Utilities T&I Industrial Telecom 72 71 49 46 44 39 36 35 33 31 27 24 24 23 18 14 12.4% 9.9% 4.6% 6.3% 7.7% 8.3% 3.0% 9.9% Q2'1
Slide 5: Utilities
Utilities Euro Millions, % on Sales Sales to Third Parties Highlights DISTRIBUTION +1.1%* • Volume decrease mainly due to continuous deterioration in European 2,318 2,287 demand. Weak pricing driving pressure on profitability despite growing industrial efficiencies +0.7%* • Europe: lower contributio
Slide 6: Utilities – Transmission
Utilities – Transmission Record orders backlog with high technology projects to enhance profitability Orders Backlog evolution € million Submarine HV ~500 ~550 ~650 ~650 ~650 ~650 ~2,300 ~300 ~1,900 ~250 ~1,700 ~900 ~1,000 ~1,050 ~650 ~800 Dec'09 Jun'10 Dec'10 Jun'11 Dec'11 Jun'12 Dec'12 Jun'13 Stre
Slide 7: Utilities – Strong increase in H2 profitability driven by transmission
Utilities – Strong increase in H2 profitability driven by transmission Adj.EBITDA increase in H2 covered by Transmission order book Utilities – Adj.EBITDA € million 2012 2013E 153 • High visibility on H2 thanks to submarine and HV order book 121 117 • Growing contribution from high value added trans
Slide 8: Trade & Installers
Trade & Installers Euro Millions, % on Sales Sales to Third Parties Highlights -2.6%* • Continuous deterioration in demand in line with FY expectations. Slight improvement in organic change through the year thanks to stabilized 2,233 2,159 demand. Price decrease fully offset by cost reduction. -8.5%
Slide 9: Industrial
Industrial Euro Millions, % on Sales Sales to Third Parties Highlights OGP -1.5%* • Orders backlog to drive higher results in H2 fully offsetting weak H1. 1,824 1,801 Recovery expected from off-shore projects in South America, Singapore and North Sea +0.6%* SURF 920 896 • Growing contribution in Umb
Slide 10: Industrial – Contribution Margin %
Industrial Growing in higher value added segments to offset current profitability decrease in Renewables Sales breakdown by business segment Business segment matrix H1 2013 H1 2013 Elevator OGP & SURF Other Elevator 3% Contribution Margin % 8% Specialties & OEM Renewables 35% 8% Specialties & OEM €
Slide 11: Telecom
Telecom Euro Millions, % on Sales Sales to Third Parties Highlights -3.5%* • H1 contraction in sales and profitability substantially in line with Q1 due to still very high comparable basis in Optical North and South America 1,431 1,466 Optical / Fiber -16.2%* • Europe: substantially stable volume vs
Slide 12: Telecom – H1 profitability decrease fully attributable to incentives suspended
Telecom – H1 profitability decrease fully attributable to incentives suspended in North and South America Adj. EBITDA evolution Euro million (15) (10) +4 (1) 44 35 33 24 Q1 2012 N. & S. America RoW Q1 2013 Q2 2012 N. & S. America RoW Q2 2013 H1 2013 Financial Results 12
Slide 13: 2013 Outlook – FY target confirmed with strong increase in profitability in H2
2013 Outlook – FY target confirmed with strong increase in profitability in H2 Solid orders backlog in Transmission and synergies to face continuous weakness in cyclical businesses FY 2013 Adj.EBITDA Target (€ mln) 600 650 H1 2013 H2 2013E 339 343 • Continuous weakness • H1 consistent with FY 308 ta
Slide 14: Agenda
AGENDA H1 2013 Highlights & FY 2013 Outlook Financial Results Appendix H1 2013 Financial Results 14
Slide 15: Profit and Loss Statement
Profit and Loss Statement Euro Millions H1 2013 H1 2012 FY 2012 Sales 3,622 3,916 7,848 YoY total growth (7.5%) YoY organic growth (5.3%) Adj.EBITDA 282 308 647 % on sales 7.8% 7.9% 8.2% Non recurring items (26) (42) (101) EBITDA 256 266 546 % on sales 7.1% 6.8% 7.0% Adj.EBIT 204 229 483 % on sales
Slide 16: Extraordinary Effects
Extraordinary Effects Euro Millions H1 2013 H1 2012 FY 2012 Antitrust investigation 1 (3) (1) Restructuring (21) (27) (74) Draka integration costs - (3) (9) Other (6) (9) (17) EBITDA adjustments (26) (42) (101) Special items (44) (9) (20) Gain/(loss) on metal derivatives (37) 1 14 Assets impairment
Slide 17: Financial Charges
Financial Charges Euro Millions H1 2013 H1 2012 FY 2012 a) a) Net interest expenses (51) (53) (111) of which non cash Conv.Bond interest exp. (2) - - Bank fees amortization (5) (5) (10) Gain/(loss) on exchange rates (10) (21) (29) Gain/(loss) on derivatives (1 ) (11) 22 18 Non recurring effects (5)
Slide 18: Statement of financial position (Balance Sheet)
Statement of financial position (Balance Sheet) Euro Millions 31 December 30 June 2013 30 June 2012 2012 Net fixed assets 2,252 2,264 2,311 of which: intangible assets 643 619 655 of which: property, plants & equipment 1,496 1,549 1,543 Net working capital 772 934 479 of which: derivatives assets/(l
Slide 19: Cash Flow
Cash Flow Euro Millions H1 2013 H1 2012 FY 2012 Adj.EBITDA 282 308 647 Non recurring items (26) (42) (101) EBITDA 256 266 546 Net Change in provisions & others (41) (8) (1) Cash flow from operations (before WC changes) 215 258 545 Working Capital changes (367) (359) 75 Paid Income Taxes (28) (32) (7
Slide 20: Agenda
AGENDA H1 2013 Highlights & FY 2013 Outlook Financial Results Appendix H1 2013 Financial Results 20
Slide 21: Prysmian Group at a glance
Prysmian Group at a glance H1 2013 Results Sales breakdown by geography Sales breakdown by business APAC 14% Telecom 17% Utilities Latin 30% America Other 9% 1% € 3.6 bn € 3.6 bn N. America 14% Industrial EMEA 25% 63% T&I 27% Adj. EBITDA by business Adj. EBITDA margin by business Telecom 11.3% 20% 9
Slide 22: Bridge Consolidated Sales
Bridge Consolidated Sales Euro Millions Total Consolidated -5.3% (207) (51) (61) 25 3,916 3,597 3,622 H1 2012 Org.Growth Metal Effect Exchange Rate H1 2013 L-f-L Perimeter effect H1 2013 Energy Cables & Systems Division -2.7% (86) (48) (50) 9 3,170 2,986 2,995 H1 2012 Org.Growth Metal Effect Exchang
Slide 23: Energy Segment – Profit and Loss Statement
Energy Segment – Profit and Loss Statement Euro Millions H1 2013 H1 2012 FY 2012 Sales to Third Parties 2,995 3,170 6,382 YoY total growth (5.5%) YoY organic growth (2.7%) Adj. EBITDA 225 229 487 % on sales 7.5% 7.2% 7.6% Adj. EBIT 172 175 379 % on sales 5.8% 5.5% 5.9% H1 2013 Financial Results 23
Slide 24: Energy Segment – Sales and Profitability by business area
Energy Segment – Sales and Profitability by business area Euro Millions, % on Sales Total Organic H1 2013 H1 2012 growth growth Sales to Third Parties Utilities 1,071 1,073 (0.2%) 0.7% Trade & Installers 974 1,110 (12.3%) (8.5%) Industrial 896 920 (2.7%) 0.6% Others 54 67 n.m. n.m. Total Energy 2,99
Slide 25: Telecom Segment – Profit and Loss Statement
Telecom Segment – Profit and Loss Statement Euro Millions H1 2013 H1 2012 FY 2012 Sales to Third Parties 627 746 1,466 YoY total growth (16.0%) YoY organic growth (16.2%) Adj. EBITDA 57 79 160 % on sales 9.0% 10.6% 10.9% Adj. EBIT 32 54 104 % on sales 5.2% 7.3% 7.1% H1 2013 Financial Results 25
Slide 26: Reference Scenario
Reference Scenario Commodities & Forex Brent Copper Aluminium Brent $/bbl Copper $/ton Aluminium $/ton Brent €/bbl Copper €/ton Aluminium €/ton 150 12,000 3,500 125 10,000 3,000 2,500 100 8,000 2,000 75 6,000 1,500 50 4,000 1,000 25 2,000 500 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-08 Jan-09 J
Slide 27: Disclaimer
Disclaimer • The managers responsible for preparing the company's financial reports, A.Bott and C.Soprano, declare, pursuant to paragraph 2 of Article 154-bis of the Consolidated Financial Act, that the accounting information contained in this presentation corresponds to the results documented in th